FTO orders investigation against FBR Member Tax Policy IR

ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered to conduct an investigation against Member Policy Inland Revenue, Federal Board of Revenue (FBR) for not responding to specific tax-related queries of Pakistani citizens receiving pensions from abroad.

It is reliably learnt that the office of the FTO had issued notice to Member Policy FBR and stated “whereas the mentioned complaint has been filed by the complainant, and whereas the FTO has ordered to conduct an investigation. Now therefore you are required to submit para-wise comments in annotated form to the allegations contained in the complaint by 03.05.2023. An additional copy of the reply may also be provided for the complainant, issued by the order of FTO.”

The FTO will probe the allegations of mal-administration as to why the FBR is not clarifying the important matter of taxation of pensioners getting pensions from foreign tax jurisdictions. Instead of giving specific answers to the queries (yes or no) of the pensioners, the FBR has merely reproduced the existing laws without giving precise answers. The complainant has referred to duties and functions of the FBR officials under the FBR Act, 2007 read with Section 206 of the Income Tax Ordinance, 2001.

The complainant states, Earlier President of Pakistan also chided FBR for what he called a “pitiful and shameful use of bureaucratic authority”, regretting that the FBR official had wasted the time of his department, the tax ombudsman and the president of Pakistan over a paltry sum and kept the matter lingering on for over a year.

He also deplored the fact that no one in a long chain of bureaucrats in the FBR deliberated over the issue to take note of the unfairness, pettiness and superfluous nature of the matter. President apologises to pensioner over long wait. “Punitive action must be taken along the entire line of decision-makers in this case and the FBR chairman should ensure that those responsible, in particular, and others, in general, go through courses to teach them priorities and courtesies”.

In the instant case, the FBR Member was not clarifying a simple matter pertaining to a Pakistani national pensioner and thereafter, issuing a fairy tale stories vide letter E-dox Number 56566-R dated12.04.2023, the complainant said.

The complainant alleged that the department has demonstrated clear incompetency in handling legal issues, which has resulted in significant delays (155 days) and errors in the administration of justice to apply fiscal laws in Pakistan. Clarification/ advice provided by Member is completely inaccurate and led to adverse consequences for the innocent pensioners without any support of law, it could easily be classified as nothing but “Fairy Tale Stories”.

The complainant accused that this clearly indicates a lack of the necessary knowledge and expertise required in providing accurate legal advice/clarification which is his primary duty under section 206 of the Income Tax Ordinance, 2001 read with FBR Act, 2007, the complainant added.

Copyright Business Recorder, 2023